Jan. 22, 2021 (orig. Aug. 21, 2020)
During the Covid-19 pandemic, Peter Pan Bus Lines, as many other small to mid-size businesses, are functioning thanks to loan money from the federal government ear-tagged for payroll costs. Many individuals have asked what the process calls for, and if these loans will be “forgiven” if certain requirements are met. There has been wide confusion regarding the Payroll Protection Program, as it has been amended once or twice since its initial enactment. Here is the latest summary:
Current forgiveness rules require 60% of funds be spent on payroll costs. That’s down from the original 75% requirement. Eligible non-payroll costs can include business rent or lease payments, mortgage interest payments and utility payments. Payroll costs include gross wages and salaries, sick pay, paid time off, and state and local taxes on payroll. This includes contributions to employee health insurance and retirement plans, but not federal unemployment tax, federal unemployment insurance or matches to Medicare and FICA.
Banks aren’t accepting loan forgiveness applications yet because they are asking the federal Small Business Administration for guidance on how to process the documentation. The PPP loan program ends Sept. 1, 2020 according to sources.
Discussions are continuing in Congress regarding relief for the Motorcoach Transportation Industry. The following proposals are being discussed in either the Senate or House: HEALS ACT, CERTS ACT, RESTART ACT.